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Symantec, McAfee fined over unauthorised renewals

Asher Moses

Symantec and McAfee have overhauled the way they handle Australian subscribers to their anti-virus products after they were fined $US750,000 ($922,000) by US authorities for routinely charging customer credit cards without permission.

New York's Attorney-General, Andrew Cuomo, investigated the two largest computer security software companies after receiving complaints and found they were charging customers to renew subscriptions without their knowledge or consent.

The investigation also revealed that both Symantec and McAfee made it difficult for consumers to contact them to opt out of automatic renewal or to request refunds for unauthorised credit card charges. Each was fined $US375,000.

"Companies cannot play hide the ball when it comes to the fees consumers are being charged," Cuomo said.

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"Consumers have a right to know what they are paying, especially when they are unwittingly agreeing to renewal fees that will not appear on their credit card bill for months."

In the US, both companies agreed to be more upfront with customers when it comes to renewal fees and allow people to easily opt out of renewal.

Symantec Australia spokeswoman Debbie Sassine confirmed Symantec automatically renews subscriptions in Australia but she said the company was rolling out changes globally to improve the process.

"Specifically Symantec is making the ability to opt out of the auto-renewal feature more clear, accessible and user-friendly for our customers," she said.

Tim Clemens, enterprise sales director for McAfee in Australia, said it was also making changes to its subscription process but stressed auto-renewal was critical for customers, as if the software does not continue receiving updates the customer could become infected with a virus.

"Even a short, unintentional lapse could result in irreversible damage or irretrievable data loss," he said.

"McAfee will provide electronic notification to consumers before and after the subscription is renewed, and will provide refunds within 60 days to any consumers who request them."

The action by the US authorities will be a set-back for Symantec and McAfee, both of which are facing strong competition from free alternatives such as AVG.

This week, Microsoft said it would soon unveil a free anti-virus service for personal computers that will go head-to-head with products from Symantec and McAfee.